‘Investment scheme has loopholes’

RULE:Securities firms would need to buy shares to meet the minimum purchase requirement, which could be exploited by some people to dump disfavored shares

Taipei Times
Date: Jan 16, 2017
By: Staff writer,with CNA

A recently announced small investment scheme to make expensive stocks and other securities more accessible to retail investors might have loopholes, brokerages said.

Securities insiders said majority shareholders of a listed company could take advantage of the loopholes to dump their shares.

The scheme, which is to be launched today, allows retail investors to buy expensive stocks, such as those of smartphone camera lens supplier Largan Precision Co (大立光), which closed at NT$4,240 on the Taiwan Stock Exchange (TWSE) on Friday.

Stocks in Taiwan are usually sold in minimum blocks of 1,000 shares, meaning investors need to spend at least NT$4.24 million (US$134,092) to buy Largan stock, an amount out of reach of most people.    [FULL  STORY]

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